Budget helped the bears to hug the market and they thanked FM Mr. P. Chidambaram for giving them a wonderful opportunity!

Interestingly many operator driven stocks went down heavily. For example Core education & technologies plunged 9.5% to close at Rs 54.75. Last Friday the stock was trading at around Rs 300 and it lost more than 85% in less than 1 week. In fact, NSE promised to bring out the culprits into books but so far we have not heard anything. If things go like this, we may see the stock to trade in single digit sooner than later. In a much same way, Onelife Capital Advisors went down 20% on Tuesday. Intertingly it fell another 20% yesterday with very low volumes –just 321 shares. Some of the stocks wentdown toknock the lower filter with low volume include Plethico Pharmace Ltd, Horizon infra, Rushil Décor, PG Electroplast Limited, Gravita Indiam, Jindal coatex, Welspun Projects Limited . Some of these shares were going down for 3 days in a row and if SEBI uses control system they can easily punish the culprits. Most of the shares went down between 10:45 to 11:00 AM yesterday which clearly indicates that these stocks were brought down by the operators using the big lacunae in the system. Will the SEBI take action now? Let us wait and see.

What to expect from the market now?

When everyone were blindly telling that the market would move up before the budget and sink after it we clearly informed you scientifically that Nifty can move up only when it closed above 5950. We also informed that Nifty could touch as low as 5650, if it did not go up beyond this Lakshman Rekha point. Now Nifty has come closer to our target of 5650! What next? In case it does not make a U turn we may see much bigger blood bath till it reaches 5200! We expect at least a bounce at around 5650! Let us verify and tell you in the coming newsletter.